The interest rate hike over in America coupled with the prediction of four more next year has led to the GBP/AUD exchange rate racing through the 1.70 level and looking like it may be back on the up.
Should we see the four expected hikes for the States then we would have a situation where the U.S interest rate is sat level with the current Australian interest rate of 1.5%. Due to the USD being a little more stable and a much more sensible choice for investors we are seeing a sell off of the Australian Dollar at present in favour of the US Dollar which is why we are witnessing a bout of Australian Dollar weakness at present.
I would not be overly surprised to see the GBP/AUD exchange rate creep up closer to 1.75 over the course of this week die to this current trend but do be wary that we have the RBA minutes from their last interest rate decision to tackle overnight tonight.
Overnight tonight we have the RBA minutes from their last interest rate decision which can lead to quite sharp movements depending on what is mentioned in them.
Any hint towards an interest rate change or an alteration to future fiscal policy may lead to a spike in the market so it may be prudent to look to have a market order in to cover such an event happening. A market order is where you can set a particular rate of exchange that you would like to achieve and should it become available, even for a matter of seconds then your currency gets bought out automatically for you.
There are a few signs showing that the Australian economy is not performing too well at present so it is a doubt that the minutes will be overly positive so I would expect to see Australian Dollar weakness overnight.
I have used Foreign currency direct on two occasions, both were stressful times for me but Daniel and staff were wonderful. Every step was explained and all queries answered fully and swiftly. I would not hesitate to recommend to anyone for an excellent service.
I decided to use this company after reading many blogs by Daniel Wright on the forecast of Sterling. He always seemed to get his predictions right and also seemed to have not only very good knowledge but a passion for the industry he is in. Daniel was not only informative but patient and gave us options on the lead up to our currency exchange.
I only have praise for the way this company make the stressful experience of Forex a simple process. Difficult to be specific but there is always the personal touch. Recently, with the BREXIT hysteria the dealers must have been very busy but Daniel Wright was always available or never failed to ring me when requested.
A totally reliable and trustworthy service. I have used them on three occasions now and my money has always come over on the agreed date at the agreed rate. Daniel Wright is a pleasure to deal with -patient, personable and professional.